Four new types of water‐soluble polysaccharides are isolated from Cardamine hupingshanensis. Herein, this study examines C. hupingshanensis polysaccharide no. 2 (CHP‐2) with a molecular weight of 21.75 kDa. Analysis revealed that CHP‐2 is composed of d‐glucuronic acid, d‐galacturonic acid, glucose, galactose, and L‐arabinose. It is speculated that the main connecting bond is →4)‐α‐D‐Glc(p)‐(1→), →t)‐α‐D‐Glcp‐(1→). Through perfusion experiments using streptozotocin‐induced diabetic rats, oral CHP‐2 solution is found to significantly reduce food intake, water intake, and fasting blood glucose levels, while increasing the weights of rats. In addition, CHP‐2 significantly reduces the serum and liver malondialdehyde contents and increases the activity of the corresponding antioxidant enzymes. Moreover, the effect elicited by the CHP‐2 solution is similar to that of phenformin hydrochloride solution. Hence, the results of this study suggest that CHP‐2 exhibits blood sugar‐lowering and anti‐oxidation effects.